Fisher likens Fed policy to Buzz Lightyear

WASHINGTON (MarketWatch) -- Dallas Fed President Richard Fisher on Thursday likened the Federal Reserve's monetary policy to Buzz Lightyear's catchphrase in a speech largely devoted to the difference between the California and Texas economies. "We dare not become the central bank counterpart to Congress by adopting a Buzz Lightyear approach of 'To infinity and beyond!' by endlessly purchasing U.S. Treasuries and agency debt so as to encumber future generations of central bankers with Hobson's choices when it comes to undoing what seems contemporarily appropriate," he said in a speech at Stanford. Fisher, who is not a voting Fed member this year, saved most of his blows for Congress, saying the central bank "has been carrying the ball for the fiscal authorities by holding down interest rates in an attempt to stoke the recovery while the fiscal authorities wrestle themselves off the mat." He said Texas is enjoying faster jobs growth than California because of lower taxes, and said the new California tax increase may exacerbate the problem.

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